Week Ahead: Bitcoin price likely to support these altcoin narratives this week

Akash Girimath FXStreet

This week is packed with important macroeconomic and crypto events. Let’s take a look at important altcoins that might trend this week and how Bitcoin price might affect the performance of these cryptocurrencies.

Last week’s newsletter: Week Ahead: This week’s altcoin narrative and Bitcoin's fourth halving targets

Events this week

January 30

Stellar Protocol (XLM) 20 upgrade vote
Optimism (OP) is also set to flood the markets with $73.93 million OP tokens.

January 31

Fed Interest Rate decision at 19:00 GMT
Fed press conference at 19:30 GMT
Ethereum Classic (ETC) Spiral Network Upgrade
ImmutableX (IMX) zkEVM mainnet launch
Render (RNDR) fee coverage ends
Sui (SUI) is also unlocking $54.45 million tokens

February 1

dYdX Protocol (DYDX) to unlock $91 million worth of tokens

February 2

Non-Farm Payrolls at 13:30 GMT

With these major events, altcoins are likely going to experience volatile movements, giving day traders a bunch of opportunities. At the end of the day, altcoins’ performance depends on Bitcoin price.

Bitcoin price - one crypto to rule them all

As noted in our previous publication, Bitcoin price’s weekly perspective has improved vastly after a bullish Swing Failure Pattern (SFP) below $39,851. But BTC is not out of the woods yet due to the nasty bearish SFP noted on January 8.

BTC/USDT 1-week chart

So, what does BTC need to do?

On the daily chart, Bitcoin price has created the first higher high after nearly two weeks of downtrend. This development notes a potential start of an uptrend. But for BTC to be out of the woods from the high timeframe perspective, it needs to produce a daily candlestick close above $48,222. This development needs to be subsequently supported by a weekly candlestick close as well.

BTC/USDT 1-day chart

For now, investors can expect a minor pullback to $41,461 after creating Monday’s high. These dips are worth buying as investors can expect a bullish comeback for BTC this week, which will reflect positively on altcoins as well.

Altcoins to focus on this week

The usual Layer 1 suspects, like Avalanche (AVAX) and Solana (SOL), have made a nice comeback, with Polkadot (DOT) and Polygon (MATIC), Near Protocol (NEAR) rising alongside.
Among the hot coins, Sui (SUI) seems to be leading the pack and is followed closely by LidoDAO (LDO).
Conflux (CFX) and Silly Dragon (SILLY), a meme coin, have taken center stage due to the upcoming Chinese New Year narratives.

Also read: Near Protocol Price Forecast: NEAR leads recovery, eyes 100% upswing

This story was corrected on January 29 at 08:13 GMT to say that the Fed rate decision, Fed press conference, and Nonfarm Payrolls data will be at 19:00 GMT, 19:30 GMT, and 13:30 GMT, respectively

Author

Akash Girimath

FXStreet

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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